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We are all familiar with the concept of the “fractional reserve banking system.” This is an accounting system used by banks to track the interest that is being paid on deposits that are held with them. What this system has is a reserve account that is used to hold the interest that is being paid to the bank, on deposit there should be enough money to cover the interest being paid.
This is where the fractional reserve system fails. The reserve account has a limit called the “minimum balance,” and this limit is enforced by the bank. A bank has to pay out a minimum amount of extra money every time they pay out a deposit. This is because if a bank were to pay the extra money to the reserve account, it would be devaluing the money they were depositing.
The minimum amount of money that the reserve account can pay out every time they pay out a deposit is called the “minimum balance.” Another term for this is the “floor of a basket of coins.” The minimum balances of the deposit and the other accounts in the banking system are called the “floor” of the basket. The reserve account usually pays out the maximum amount.
This all sounds really confusing so I won’t go too deep into the details. What I will say is just that there is a floor of a basket that is the exact amount of money that the bank can pay out every time.
The concept of a floor of a basket is a little more complicated than most of us would think. Let me explain. The floor of a basket means the amount of money that the bank can pay out whenever the bank wants to pay out the minimum.
The bank can either choose to pay out the minimum or the maximum amount of money anytime it wants. When the bank does not want to pay out a certain amount, this is known as a “floor.” The bank then pays out the floor when it wants. A floor of 1,200 is the most common floor, because the bank can only pay out 1,200 when the bank wants. This means that the bank then pays out what we call “the floor.
The floor is the amount of money that the bank can pay out whenever the bank wants to pay out the minimum. The bank can either choose to pay out the minimum or the maximum amount of money anytime it wants. When the bank does not want to pay out a certain amount, this is known as a floor. The bank then pays out the floor when it wants.
This is the amount of money that the bank actually has to pay out, not the amount that the bank can pay out. Once you’ve calculated the amount of money you can pay out, you can then add in the amount that you think you can cover. The total of these two numbers determines the “face value” of your loan.
“Google finance” is a term that refers to a business model that allows for banks to lend money at interest. This is in contrast to “free float” loans, which allow for banks to lend money at a set rate (interest) in which the amount of money borrowed is not calculated.
For example, the amount of money that a particular bank can loan is determined by the amount it can pay out, and the face value of your loan is calculated by adding in the number of dollars you think you can pay out and the face value that you think the bank will pay out.
